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State Name: New Jersey
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State Name lower: new jersey
State Abbreviation: NJ
State Abbreviation Lower: nj

MND NewsWire features plain and simple interpretations of industry related data and events written in a manner that maintains the interest of random readers while still catering to the perspective of a housing market professional.

Congressman Elijah E. Cummings recently
introduced a bill that would create an independent monitor to oversee the
distribution of funds paid by mortgage services to borrowers to compensate for illegal
foreclosures and other abuses.

The bill, HR 1706, The Mortgage
Settlement Monitoring Act of 2013, was crafted by Cummings, Ranking Member of
the House Committee on Oversight and Government Reform, because of what he views
as a lack of transparency and accountability on the part of federal regulators,
banks and their servicing subsidiaries.

As background, in 2012 the Federal
Reserve and the Office of Comptroller of the Currency (OCC) ordered 14 banks to
begin individual case-by-case reviews (at the request of borrowers) of files
relating to alleged servicing abuses. At
issue were illegal foreclosures, modification problems, dual tracking of
remediation and foreclosures, improper fees and other violations. Thousands of reviews were requested and the
banks hired independent firms to conduct them.

After several months it became
apparent that the reviews were taking an inordinate amount of time and costing
huge amounts of money (the consultant firms were being paid as much as $250 per
hour). In February 2013 the regulators settled with 13 of the 14 banks for an aggregate
of $3.5 billion in cash to end the reviews.
The money was to be allocated to 4.2 million borrowers whose homes were
in any state of foreclosure in 2009 or 2010 and serviced by one of the 13 banks
or their subsidiaries regardless of whether or not they had requested a review.

Last month the Fed and OCC released a
payment schedule for benefits from 11 of the banks. Amounts to be paid were
based on a formula which appeared to set a value based on inconvenience and
financial loss and ranged from $300 to $125,000 per borrower. For example, where a servicer initiated a
foreclosure against a borrower who was performing all requirements of a written
trial-period modification plan and that foreclosure was rescinded the payment
would be $6,000; if completed, $50,000.

Most of the largest payments ($125,000)
are going to members of the military who were foreclosed despite protections
afforded them under federal law. Except
for benefits designated for military personnel, amounts are halved if the
borrower had not requested to be part of the original independent review. Information on benefit criteria, payment
amounts, and the numbers of borrowers affected can be reviewed here.

While there was some comment at the
time, largely in politically oriented media, about the seemingly paltry amounts
paid to many borrowers, especially those who lost their homes, the announcement
passed quietly. Payments started to roll
out on April 12 and to date $1.6 million in checks have been cashed or
deposited.

NBC and MSNBC aired a report on the
payouts this morning and Cummings appeared on the latter to discuss it and his
bill. He blasted regulators,
particularly OCC, for accepting the settlement amount and for the methods used in
determining the criteria for the payouts, the amounts of the individual
payments, and for refusing to give Congress information on how these decisions
were reached.

Cummings said he felt the settlement
amount had been set by how much the banks were willing to pay. They alone established the categories for
payment he said, and made the determination as to how borrowers fit into those
categories.

Cummings
has been joined in his criticism about the settlement by Senator Elizabeth
Warren (D-MA), a member of the Senate Banking Committee and the two launched a joint investigation of
the settlement in January. At that time
they requested that the Fed and OCC provide documents relating to illegal
actions by mortgage servicers during the Independent Foreclosure Review. Both
agencies refused to provide these documents, arguing that they are the "trade
secrets" of mortgage servicers.

Cummings' bill would create an
Independent Monitor appointed by the President to review the compliance of all
parties to the settlement, both servicers and regulators, and issue quarterly
reports to Congress and the public. These reports must include:

A description of the criteria and
methodology used to determine eligibility for direct and indirect relief and a
description of due process protections for recipients;

Information on borrowers who receive
relief by mortgage servicer including demographic information, the level of
direct compensation for similarly situated borrowers, and the number and
amounts of principal reduction loan modifications and other types of borrower
assistance;

Information on the credit given to
mortgage servicers for direct and indirect compensation provided to borrowers;
and

A list of instances in which
mortgage servicers or regulators fail to comply with the terms of the
settlement, and a list of actions taken by regulators to compel compliance.

"Mortgage servicers have now
admitted that they broke the law by illegally foreclosing on American families
and committing numerous other abuses, but regulators refuse to provide even the
most basic information about the extent of the abuses that were uncovered,"
said Cummings. "Since federal regulators now plan to rely on these same
banks to determine payouts and deliver settlement funds to borrowers, we need
an Independent Monitor to bring transparency and accountability to this
process."

Comments

"WHERE HAS AMERICA GONE?" I DON'T RECOGNIZE MY COUNTRY ANYMORE. ALL THAT WAS SAFE WHEN I WAS BORN BEFORE 1940 IS NOT GONE. ARE WE SO MUCH OUT OF CONTROL THAT THERE IS NOT WAY BACK TO BEING "THE GREAT AMERICA," WE ONCE WERE.
THE SETTLEMENT WITH THE AMERICANS WHO WERE RIPPED OFF BY THE BANKS, PAID PENNIES ON THE DOLLAR, AND TOLD TO CASH THE CHECKS IN 90 DAYS, OR THEY WOULD BE VOID. CAN'T SOMEONE OUT THERE, ANYONE STOP THIS SLAUGHTER OF MILLIONS OF PEOPLE. WE SHOULD HAVE A YEAR TO CASH THE CHECKS IN,, SO WE WOULD HAVE TIME TO RESEARCH OOUR OPTIONS. WE AS A NATION CAN'T STAND BY AND ALLOW THIS TO HAPPEN..............WE JUST CAN'T. I AM A SENIOR, FEMALE, AND THEY TOOK EVERYTHING. I LIVED ALONE AND HAD JUST BEEN DIAGNOSED WITH CANCER. TO LIST THE DIRTY, DIRTY TRICKS THEY PULLED ON ME WOULD FILL 50 PAGES, SO I WILL JUST SAY THEY LEFT NO STONE UNTURNED WHEN IT CAME TO TAKING EVRY PENNY I HAD AND ANYTHING I COULD EAR IN THE FUTURE.
SOMEONE, SOMEONE PLEASE TELL ME IF THERE IS ANYTHING THAT IS IN THE PLANS TO ASSURE THAT EACH CONSUMER WHO WAS RIPPED OFF CAN COLLECT THE FULL AMOUNT OWED THEM PLUS PUNITIVE DAMAGES AND INTEREST...........NOW, THAT WOULD COME CLOSE TO BEING FAIR,
KG

Wells Fargo refused to put my modification in writing. I obeyed a modification to the point 2 times and they told me they could not put it in writing until complete. I completed 2 times and never put it in writing. I recorded out conversation and they told me both times you follwed the modification and you did nothing wrong but the state of Texas stop doing modifications. I have this all recorded but I am sure because mine was not in writing and I had to file bankruptcy to keep my house I will get $300. What an insult. Who tells someone something as lame as this, they really insulted my intellegence. jennifer75702@yahoo.com

I totally sympathize with you, Kim. I got $300--enough to pay my health insurance bill for one month. I'm very disillusioned about this country after what our government has allowed the banks to do. When Eric Holder came right out and said that it would be hazardous to the economy to prosecute them, I was ready to throw in the towel. It makes me ill to think about all the military personnel overseas risking their lives for this abomination of a government.

WELLS FARGO DESTROYED MY LIFE, I HAD AGREEMENT WITH THEM, ALL PAID UP TO DATE, SENT IN MY MORGAGE PAYMENT,THEY RETURNED IT, CHECK AND ALL. NEXT STATEMENT SAID I OWED 19,0000.CALLED TALKED TO SOMEONE, THEY SAID O
"O MY THIS IS A MISTAKE" WE WILL TAKE CARE OF IT. 2 WEEKS LATER A FORECLOSURE LETTER, WITH LAWYERS FEES ALMOST 13,0000 . YOU HAVE 20 DAYS TO RESPOND PAY THIS. ITS JUST UNBELIEVEABLE. THE WHOLE STORY TO LONG TO WRITE.STARTING TO WRITE A BOOK.

Has anyone tried to get their credit restored? Cant help but wondering if we should be held responsible credit wise for the mortgage if we were foreclosed, not because of our fault, but because of the banks. You would think they would at least restore our credit since they were in fault.

Ms Newton, Litton listed my Short Sale as a foreclosure on my credit report. I had to pay a Law firm $750.00 and $90.00 a month to restore my credit. The work is ongoing. I'm in Hawaii, waiting on my check. As Litton mailed them last Friday. We'll see.

Me and my wife lost our home because the mortgage company said the sheriff sale was canceled. HOWEVER, the sheriff sale WAS NOT cancelled. Our $120,000 home was sold at the sheriff sale for $40,000. Now this independent review kicks in and gives us $500.00. "SERIOUS" Are these guys serious? I was qualified for the $24,000 payout. I did not cash the check and I am in contact with my local senator. Thieves...This independent review was pure garbage. Just another ROBO SIGNING.....LOL queenkingsuited@hotmail.com if anyone has some suggestions..

Well I haven't received any monies from nobody and BAC put me in foreclosure even when I sent them the required monies to get my loan payments up to date. They in turn sent the check back which they held it for over three months and I was forced into bankruptcy to keep my home. I had told them I got behind on my payments because I am disabled and was trying to work then but was unable to keep working because of my medical condition they did not care they forced me into bankruptcy and told me the amount of money I sent them was not enough but I sent the exact amount they told me it would take to keep me out of foreclosure and get this the amount I sent them was the amount that is listed on my credit reports this whole thing is a rip off because I did send the review paper work in and now the government settles on this little of amount so they could pocket the rest. The american people need to step up and take back the government like the people are doing overseas we need to stop these injustices to us everytime these big banks keep taking and not getting thrown in jail for doing illegal stuff.

The Fed said that borrowers with questions should call Rust at 1-888-952-9105 to confirm eligibility, update their contact information or get answers to other questions. Article "The Fed Admits Mistakes in Mortgage Settlement":
http://www.huffingtonpost.com/2013/05/08/fed-mortgage-settlement-mistake_n_3240838.html

I feel like I'm back on this merry go round with Bank Of America and now with Rust Consulting 1-888-952-9105, Our government have to be in the middle of this bs too .... to allow this type of foolishness to go on for so long with so many families being swindled out of their homes because of their American greed. After receiving a undersize check from Rust, now the Feds are telling us to call Rust Consulting for our additional funds because of the errors in the initial payments @ 1-888-952-9105, Rust is telling us to call our service company ( Bank Of America) @ 1-888-325-5381... Bank Of America is telling us to call Rust....My question is to B.O.A, Rust & the Fed which one of you are mad because you did not get your share of the pie this time... I'm so disturbed we are going back down this road again, when the employees have no answers or clue on what is going on when you call... The Fed, Bank Of America & Rust Consulting are all criminals.

The whole process is a sham. We are being put through the same things that were being done through out the so called modification process. I received the money that they sent me and it also was not correct for my situation. The original payment format for payouts were changed to how they are doing the payouts now. I have copies of both of them. i received the payout for finishing the modification payments and the foreclosure was rescinded when in fact my home was foreclosed on and I should have received at least $50,000.00 original payout was 125,000 plus equity and I received a mere 6,000 and Rust Consulting answer is the payments are what they are. Recourse is to sue and spend the 6,000 you sent me for lawyers plus money I don't have. If the correct action is going to crash the big banks that have no morals to its stakeholders then let the small banks take over that are in tune to their environment and display good judgement and morals.

Well Ladies & Gentlemen, I am a housing counselor went through a foreclosure myself and experienced everything you all did. I have figured out that they issued a check to everyone that had received a Trustee Deed during the period of 1/1/2009 thorugh 12/31/2010 for funds under the Independent Foreclosure Review. The worst thing is that what they failed at is to verify if people actually lost their homes. I have clients that were given modification, a principal reduction, were able to keep their homes, and still got a $3000 check, where I in turn received a check for $500. Whre is the justice? The Government really needs to take a look at what happened. I have so many situations where people got money and really should not have. I guess we can only HOPE there is someone in government that is honest, and truly remembers their promise as to what they would do when elected.

This is unfair Bank of America took my home for $600.00 crazy but what can I do ??? The mental scare they have left me and my children will never go away ... The credit issue can be cleared by you your self . I did it my fha my foreclose off my credit all cleared . just dispute your foreclose on line . As for hud just call them and do not stop get the bank who foreclosed on u to clear this get it in writing . So if you bank tells your forcloser is still in progress then tell them your statue of limitation has not run out to take to court . It will take time but do not spend money on hiring some one . Also there is a web site you can go to . To complain about the bank . So too all who have lost I feel your pain .

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